Is It Easy To Outsource Payroll?

In this piece we’re going to tackle the question that an increasing number of companies, both large and small, have started to ask themselves as they look beyond conducting their payroll in house, to outsourcing payroll. We’re going to outline the main elements that will determine how easy it will be for a company to successfully outsource payroll and providing tips on how to make the transition from in house payroll to outsourcing payroll as smooth and problem free as possible.

1. Size of the company

Usually, the larger the company is, and the more staff members it has, the longer and more laborious the process is of transferring all data and processes from inhouse payroll staff to an external payroll agency.

2. Complexity of the companies staffing arrangements

Sometimes, even relatively small companies with 30 staff members or less have more complicated staffing arrangements than large companies of 1000 plus employees. This is often the case with start-up companies that have more elaborate and experimental payroll schedules because they often have a greater mix of staff types (freelance, contractor, permanent staff, zero hours contract staff). This greater complexity understandably makes the companies transfer from doing payroll in house to having payroll done by an external company more difficult.

3. Full or partial outsource

The ease of outsourcing payroll also depends on whether the company wants to outsource all of their payroll activities or just some of them. It is not uncommon for companies to want to “test the water” by outsourcing only a small portion of their payroll activities. However, this often makes things more difficult and has the potential to introduce new errors, mistakes, duplications and oversights into the mix if the external payroll agency and the inhouse team are not kept in complete sync all the time.

For this reason, it makes more sense for the company to carefully think about the decision to outsource or keep things in house, weighing up the pros and cons, and once a decision is made to go all in with one of the decisions.

4. The Chosen Provider

Although we have discussed three main things that have a large role in how easy to difficult outsourcing payroll will be, all of the above things (size of company, complexity of company, full or partial outsourcing) are made dramatically less challenging if a company outsources payroll to an experienced and reliable payroll agency.

At Corporate Payroll Solutions, we’ve been handling payroll on behalf of companies for many years and have decades of combined payroll experience. As a result, we have helped countless companies transition from in house payroll to us in an effortless and painless manner, even in cases where the company has been large, has had complex staffing arrangements and has had only wanted to outsource part of their activities to test the waters.

On the other hand, we have heard horror stories from companies that have decided to outsource to less than competent payroll agencies and have faced many problems as a result.

So, get in touch with us today. Outsourcing payroll doesn’t have to be complicated, expensive or stressful if you look to an experienced, dependable and reliable payroll agency like Corporate Payroll Solutions.